The New Arthurian Economics

Wednesday, December 8, 2010

Wikipedia, Bastiat, Trade

From Wikipedka: "Bastiat argued that the national trade deficit was an indicator of a successful economy..."

But Bastiat's logic fails immediately if we "suppose" it's an Englishman who's running that import/export business. Sure, it's still profit that makes up the difference. But in this case, the French trade deficit is an indication of England's successful economy.